Jesse Makes an Offer to Ike,and Ike Accepts;then the State

question 38

Multiple Choice

Jesse makes an offer to Ike,and Ike accepts;then the state legislature passes a law that makes performance of the contract illegal.What is the effect of the new statute on the contract?

• A) The contract is severed;any portions that are legal must still be performed and any portions that have been made illegal must not be performed.
• B) The statute has no effect on the contract.
• C) The statute acts as a condition on the contract.
• D) The statute discharges the obligations of both parties under the contract.

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Definitions:

Maturity Factoring

Short-term financing in which the factor purchases all of a firm’s receivables and forwards the proceeds to the seller as soon as they are collected.

Short-Term Financing

Borrowing funds or obtaining financial support for a short duration, typically less than a year, to cover immediate needs.

Factor Purchases

Transactions where a company outsources services or acquires assets, typically involving a third-party, or "factor," to facilitate business operations.

Receivables Collection

The process of managing and collecting payments from customers who have purchased goods or services on credit.